Credit Agricole purchase of Italian savings banks delayed to September-sources


MILAN/ROME, July 31 (Reuters) - The purchase by France'sCredit Agricole <CAGR.PA> of three small Italian savings banks
has been delayed to September, as a domestic banking fund and
other investors need to fork out more money to buy the lenders'
bad loans and cover for the ensuing losses, two sources close to
the matter said on Monday.
    The French bank said in April it was in talks with the Bank
of Italy and the country's Interbank Deposit Protection Fund to
acquire the Cesena, Rimini and San Miniato savings banks.
    The deal was expected to be closed this week, but the
sources said it had been postponed until after the holiday
season as some details still needed to be sorted out.
    Credit Agricole is buying the three banks for 130 million
euros ($153 million) but wants them cleaned up from their bad
loans, which total 3 billion euros on a gross basis.
    The Italian fund that guarantees deposits is expected to
inject a further 95 million euros mostly to cover losses
resulting from the sale of the bad loans, one of the sources
    At least another 300 million euros are needed from investors
to complete the securitisation of the mezzanine tranche of the
banks' bad loans, according to the sources.

($1 = 0.8481 euros)

 (Reporting by Andrea Mandala, Giselda Vagnoni and Stefano
 ((; +39 02 6612 9723; Reuters


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